Question: Calculate the annual forward premium for the foreign currency using the following time intervals: 1 week, 2 weeks, 1 month, 2 months 3 onths and

Calculate the annual forward premium for the foreign currency using the following time intervals: 1 week, 2 weeks, 1 month, 2 months 3 onths and 6 months. Identify the direction for the foreign currency and compare to the average forecast reported above Days F annualized F/S-1 annualizedS/F -1 SDJPY SW FWD -13.36 -13.2 -13.28 132.06 0.10% 0.10% SDJPY 2W FWD -26.68 -26.37 -26.525 14 131.93 0.20% 0.20% ISDJPY 1M FWD -58.66 -56.78 -57.72 30 131.62 0.44% 0.44% JSDJPY 2M FWD -120.96 -118.66 -119.81 60 131.00 -0.91% 0.91% SDJPY 3M FWD -177.94 -176.2 177.07 90 130.42 1.34% 1.36% ISDJPY 6M FWD -353.44 -344.9 349.17 180 128.70 -2.64% 2.71% USDJPY 1Y FWD 672.74 -666.03 669.385 360 125.50 -5.06% 5.33% USD/JPY 132.18 132.21 132.195 6) Compare the annualized forward premium calculated with short intervals to the one year number. Are the numbers similar? Is there a pattern? What could be the causes for the difference? 7) Compare the forward premium calculated above to the forecasts made by the "experts" included in the Fxstreet website. Is the direction the same? What factors do you think the analysts used to develop their own forecasts? Include the ACTUAL spot values for the pair one week after the initial forecast. Which of the experts was closest to the actual value? USD/JF PREVIOUS WEEK The FXStreet Forec

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